Bill Text: TX HB2440 | 2015-2016 | 84th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to transportation network companies; imposing and authorizing fees; requiring an occupational permit; authorizing a civil penalty.
Spectrum: Moderate Partisan Bill (Republican 15-2)
Status: (Introduced - Dead) 2015-05-04 - Committee report sent to Calendars [HB2440 Detail]
Download: Texas-2015-HB2440-Introduced.html
Bill Title: Relating to transportation network companies; imposing and authorizing fees; requiring an occupational permit; authorizing a civil penalty.
Spectrum: Moderate Partisan Bill (Republican 15-2)
Status: (Introduced - Dead) 2015-05-04 - Committee report sent to Calendars [HB2440 Detail]
Download: Texas-2015-HB2440-Introduced.html
84R5723 JTS-F | ||
By: Paddie | H.B. No. 2440 |
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relating to the regulation of transportation network companies; | ||
imposing and authorizing fees; requiring an occupational permit. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle C, Title 14, Occupations Code, is | ||
amended by adding Chapter 2402 to read as follows: | ||
CHAPTER 2402. TRANSPORTATION NETWORK COMPANIES | ||
Sec. 2402.001. DEFINITIONS. In this chapter: | ||
(1) "Department" means the Texas Department of Motor | ||
Vehicles. | ||
(2) "Transportation network company" means an entity | ||
that uses a digital network or software application service to | ||
connect passengers to transportation network services provided by | ||
transportation network drivers. | ||
(3) "Transportation network driver" means an | ||
individual who operates a motor vehicle that is: | ||
(A) owned, leased, or otherwise authorized for | ||
use by the individual; and | ||
(B) used to provide transportation network | ||
services. | ||
(4) "Transportation network services" means | ||
transportation of a passenger between points chosen by the | ||
passenger and prearranged with a transportation network driver | ||
through the use of a transportation network company's digital | ||
network or software application. The term includes services | ||
beginning from the acceptance of a request for transportation | ||
received through the transportation network company's digital | ||
network or software application service and terminating when the | ||
passenger exits the transportation network driver's vehicle. | ||
Sec. 2402.002. NATURE OF TRANSPORTATION NETWORK COMPANIES, | ||
DRIVERS, AND VEHICLES. (a) Transportation network companies and | ||
transportation network drivers are not common carriers, contract | ||
carriers, or motor carriers and do not provide taxicab, for-hire, | ||
or street hail service. | ||
(b) A transportation network company: | ||
(1) does not own, control, operate, or manage vehicles | ||
used by transportation network drivers; and | ||
(2) is not a taxicab company or for-hire vehicle | ||
owner. | ||
Sec. 2402.003. PERMIT REQUIRED; FEE. (a) A person may not | ||
operate a transportation network company in this state without | ||
obtaining and maintaining a permit issued by the department. | ||
(b) The department shall issue a permit to each applicant | ||
that meets the requirements of this chapter and pays the fee | ||
required by Subsection (c). | ||
(c) A transportation network company must pay a fee of | ||
$5,000 annually to the department to maintain a permit under this | ||
chapter. | ||
(d) The department may suspend or revoke a permit issued to | ||
a transportation network company that violates a provision of this | ||
chapter. | ||
Sec. 2402.004. AGENT. A transportation network company | ||
shall maintain an agent for service of process in this state. | ||
Sec. 2402.005. FARES. A transportation network company | ||
charging a fare for its services shall: | ||
(1) disclose to passengers the fare calculation method | ||
on the company's Internet website or within the company's software | ||
application service; and | ||
(2) before a passenger enters the transportation | ||
network driver's vehicle, provide the passenger with: | ||
(A) the applicable rates being charged for the | ||
service; and | ||
(B) the option to receive an estimated fare. | ||
Sec. 2402.006. IDENTIFICATION OF VEHICLES AND DRIVERS. The | ||
transportation network company's software application or Internet | ||
website must display, before the passenger enters the | ||
transportation network driver's vehicle: | ||
(1) a picture of the transportation network driver; | ||
and | ||
(2) the vehicle's license plate number. | ||
Sec. 2402.007. ELECTRONIC RECEIPT. Within a reasonable | ||
period of time following the completion of a trip, a transportation | ||
network company shall transmit an electronic receipt to the | ||
passenger that lists: | ||
(1) the origin and destination of the trip; | ||
(2) the total time and distance of the trip; and | ||
(3) an itemization of the total fare paid, if any. | ||
Sec. 2402.008. INSURANCE. (a) During the time that a | ||
transportation network driver is logged into a transportation | ||
network company's digital network but not providing transportation | ||
network services, financial responsibility for the driver's | ||
vehicle must be established as required under Chapter 601, | ||
Transportation Code, except that the motor vehicle liability | ||
insurance policy must be an owner's or operator's policy that is | ||
issued by: | ||
(1) an insurance company authorized to write motor | ||
vehicle liability insurance in this state; or | ||
(2) a surplus lines insurer under Chapter 981, | ||
Insurance Code. | ||
(b) The requirements of Subsection (a) may be satisfied by a | ||
combination of insurance policies maintained by the transportation | ||
network company or transportation network driver, including a motor | ||
vehicle liability insurance policy that provides coverage in the | ||
event the driver's policy excludes coverage according to its terms. | ||
(c) During the time that a transportation network driver is | ||
providing transportation network services, the transportation | ||
network company must establish financial responsibility for the | ||
driver's vehicle through a motor vehicle liability insurance policy | ||
that: | ||
(1) provides coverage of at least $1 million per | ||
accident for bodily injury and property damage; and | ||
(2) is issued by an insurer described by Subsection | ||
(a). | ||
(d) The requirements of Subsection (c) may be satisfied by a | ||
combination of insurance policies maintained by the transportation | ||
network company or transportation network driver. | ||
(e) A transportation network driver involved in an accident | ||
while providing transportation network services shall: | ||
(1) provide proof that the vehicle involved in the | ||
accident is insured as required by this section at the time of the | ||
accident; and | ||
(2) notify the transportation network company of the | ||
accident. | ||
Sec. 2402.009. ZERO-TOLERANCE POLICY FOR DRUG OR ALCOHOL | ||
USE. (a) A transportation network company shall: | ||
(1) implement a zero-tolerance policy that prohibits a | ||
transportation network driver from using or being under the | ||
influence of drugs or alcohol when the driver: | ||
(A) is providing transportation network | ||
services; or | ||
(B) is logged into the transportation network | ||
company's digital network but is not providing transportation | ||
network services; and | ||
(2) post on its Internet website: | ||
(A) notice of the policy; and | ||
(B) procedures to report a complaint about a | ||
driver with whom a passenger was matched and who the passenger | ||
reasonably suspects was using or was under the influence of drugs or | ||
alcohol during the course of the trip. | ||
(b) On receipt of a passenger complaint alleging a violation | ||
of the zero-tolerance policy, the transportation network company | ||
shall: | ||
(1) conduct an investigation into the reported | ||
incident; and | ||
(2) immediately suspend the transportation network | ||
driver's access to the company's digital network for the duration of | ||
the investigation. | ||
(c) The transportation network company shall maintain | ||
records relevant to a complaint for a period of at least two years | ||
after the date the complaint is received. | ||
Sec. 2402.010. DRIVER REQUIREMENTS. (a) Before allowing an | ||
individual to act as a transportation network driver on its digital | ||
network, a transportation network company shall: | ||
(1) require the individual to submit an application to | ||
the company, which must include information regarding the person's | ||
address, age, driver's license, driving history, motor vehicle | ||
registration, motor vehicle liability insurance, and other | ||
information required by the company; | ||
(2) conduct, or have a third party conduct, a local and | ||
national criminal background check for each applicant that includes | ||
the use of: | ||
(A) a commercial multistate and | ||
multi-jurisdiction criminal records locator with primary source | ||
validation; and | ||
(B) the national sex offender registry database | ||
maintained by the United States Department of Justice or successor | ||
agency; and | ||
(3) obtain and review the person's driving record. | ||
(b) The transportation network company may not permit to act | ||
as a transportation network driver on its digital network a person | ||
who: | ||
(1) has been convicted of: | ||
(A) more than three offenses classified by the | ||
Department of Public Safety as moving violations in the preceding | ||
three-year period; or | ||
(B) one of the following offenses in the | ||
preceding three-year period: | ||
(i) fleeing or attempting to elude a police | ||
officer under Section 545.421, Transportation Code; | ||
(ii) reckless driving under Section | ||
545.401, Transportation Code; | ||
(iii) driving without a valid driver's | ||
license under Section 521.025, Transportation Code; or | ||
(iv) driving with an invalid driver's | ||
license under Section 521.457, Transportation Code; | ||
(2) has been convicted, in the preceding seven-year | ||
period, of driving while intoxicated under Section 49.04 or 49.045, | ||
Penal Code; | ||
(3) has been convicted at any time of: | ||
(A) fraud; | ||
(B) a sexual offense; or | ||
(C) use of a motor vehicle to commit: | ||
(i) a felony; | ||
(ii) a crime involving property damage; | ||
(iii) theft; | ||
(iv) an act of violence; or | ||
(v) an offense of making a terroristic | ||
threat; | ||
(4) is a match in the national sex offender registry | ||
database; | ||
(5) does not possess a valid driver's license; | ||
(6) does not possess proof of registration or | ||
financial responsibility for the motor vehicle used to provide | ||
transportation network services; or | ||
(7) is younger than 19 years of age. | ||
Sec. 2402.011. VEHICLE SAFETY AND EMISSIONS. A | ||
transportation network company shall require that each motor | ||
vehicle that a transportation network driver will use to provide | ||
transportation network services meets the requirements of Chapter | ||
548, Transportation Code. | ||
Sec. 2402.012. NO STREET HAILS. A transportation network | ||
driver may accept only rides booked through a transportation | ||
network company's digital network or software application service | ||
and may not solicit or accept street hails. | ||
Sec. 2402.013. NO CASH TRIPS. The transportation network | ||
company shall prohibit solicitation or acceptance of cash payments | ||
from passengers and notify transportation network drivers of the | ||
prohibition. A transportation network driver may not solicit or | ||
accept cash payments from passengers. Payment for transportation | ||
network services may be made only electronically using the | ||
transportation network company's digital network or software | ||
application. | ||
Sec. 2402.014. NO DISCRIMINATION; ACCESSIBILITY. (a) A | ||
transportation network company shall adopt a policy of | ||
nondiscrimination on the basis of destination, race, color, | ||
national origin, religious belief or affiliation, sex, disability, | ||
age, sexual orientation, or gender identity with respect to | ||
passengers and potential passengers and notify transportation | ||
network drivers of the policy. | ||
(b) A transportation network driver shall comply with all | ||
applicable laws regarding nondiscrimination against passengers or | ||
potential passengers on the basis of destination, race, color, | ||
national origin, religious belief or affiliation, sex, disability, | ||
age, sexual orientation, or gender identity. | ||
(c) A transportation network driver shall comply with all | ||
applicable laws relating to accommodation of service animals. | ||
(d) A transportation network company may not impose | ||
additional charges for providing services to persons with physical | ||
disabilities because of those disabilities. | ||
(e) A transportation network company shall provide | ||
passengers an opportunity to indicate whether they require a | ||
wheelchair-accessible vehicle. If a transportation network company | ||
is unable to arrange wheelchair-accessible transportation network | ||
service, the company shall direct the passenger to an alternate | ||
provider of wheelchair-accessible service, if available. | ||
Sec. 2402.015. ACCESSIBLE TRANSPORTATION; SURCHARGE. (a) | ||
The department may impose a fee, not to exceed $10,000 annually, on | ||
transportation network companies, taxicab companies, and limousine | ||
and other for-hire vehicle companies that do not provide | ||
wheelchair-accessible service and deposit the fees into an account | ||
in the general revenue fund to provide grants to transportation | ||
network companies, taxicab companies, and limousine and other | ||
for-hire vehicle companies that provide wheelchair-accessible | ||
service. | ||
(b) A grant distributed under Subsection (a): | ||
(1) may be in an amount not to exceed $15,000; and | ||
(2) may be distributed only to a company that meets a | ||
minimum level of service as determined by department rule. | ||
Sec. 2402.016. RECORDS. A transportation network company | ||
shall maintain: | ||
(1) individual trip records for at least one year | ||
after the date the trip was provided; and | ||
(2) transportation network driver records at least | ||
until the first anniversary of the date on which a transportation | ||
network driver's activation on the company's digital network has | ||
ended. | ||
Sec. 2402.017. PERSONALLY IDENTIFIABLE INFORMATION. (a) A | ||
transportation network company may not disclose a passenger's | ||
personally identifiable information to a third party unless: | ||
(1) the passenger consents to the disclosure; | ||
(2) disclosure is required by a legal obligation; or | ||
(3) disclosure is required to: | ||
(A) protect or defend the terms of use of the | ||
service; or | ||
(B) investigate violations of those terms. | ||
(b) In addition to the disclosures authorized under | ||
Subsection (a), a transportation network company may share a | ||
passenger's name or telephone number with the transportation | ||
network driver providing transportation network services to the | ||
passenger to facilitate correct identification of the passenger by | ||
the transportation network driver or to facilitate communication | ||
between the passenger and the transportation network driver. | ||
Sec. 2402.018. CONTROLLING AUTHORITY. Notwithstanding any | ||
other provision of law, transportation network companies and | ||
transportation network drivers are governed exclusively by this | ||
chapter and any rules adopted by the department under this chapter. | ||
A municipality or other local entity may not: | ||
(1) impose a tax on, or require a license for, a | ||
transportation network company or a transportation network driver; | ||
or | ||
(2) subject a transportation network company or | ||
transportation network driver to the municipality's or other local | ||
entity's rate, entry, operational, or other requirements. | ||
SECTION 2. This Act takes effect September 1, 2015. |